JD.com, Inc. (NASDAQ:JD) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 07:30 am ET


JD.com, Inc. (NASDAQ:JD) Q2 2019 Earnings Conference Call - Final Transcript


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Hello and thank you for standing by for JD.com's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]. After management's prepared remarks, there will be a question-and-answer session. [Operator Instructions]

I'd like to turn the meeting over to your host for today's conference Jia Dong.

Jia Dong

Thank you. Welcome to our second quarter 2019 earnings conference call. Joining me on the call today are Mr. Richard Liu, JD.com Group CEO; Mr. Lei Xu, CEO of JD Retail; Mr. Zhenhui Wang, CEO of JD Logistics; Sidney Huang, CFO; and Jon Liao, our Chief Strategy Officer.

For today's agenda, Richard Liu, will discuss highlights for the second quarter 2019 followed by Sidney Huang, our CFO. Other management will join the Q&A session.

Before we continue, I refer you to our Safe Harbor statement in the earnings press release, which applies to this call, as we will make forward-looking statements. Also, this call includes discussions of certain non-GAAP financial measures. Please refer to our earnings release, which contains a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Finally, please note that, unless otherwise stated, all figures mentioned during this conference call are in RMB.

I would now like to turn the call over to Richard Liu.

Richard Liu

[Foreign Speech]

Thank you, everyone, for joining this call. I believe you will pay much attention on this conference call on our revenue, especially looking forward at our revenue results. As you have seen that in the past quarter one and quarter two, we have achieved quite positive revenue results, and these are mainly contributed to two factors. And number one is through our years of our commitment in our business plans, and we have even lot of business have broken even and even gained some profits.

And for example, our JD Logistics, after years of efforts, we have reached our breakeven point. And also, we have some first year characters, and after years of investments, we have achieved some revenue -- profits -- sorry, profits. And secondly, for the past four years, we have invested heavily in the first two sixth-tier lower cities. At the beginning, the cost of our logistics keeps relatively high. And after years of investments and our increasing our fulfillment and our opening strategies, our fulfillment expense costs continued to decline.

So the revenues we gain today is not because of -- profits -- profits, sorry. The profits we gained today is not because of the reduction of our investment or elimination of some ill-performed business. And on country, our commitment to our long-term investment never changed. We will continue to make our apt efforts for the growth of our business and to return and benefits for our shareholders. And that we will continue our investments on the technology in terms of AI, Big Data, cloud and other new formats of the business like the fresh groceries and all kinds of new, innovative businesses.

And as we have done from the past, we strongly confirm you that we will continue our efforts